Blue Star Foods Corp., a Delaware-based seafood company with a market capitalization of $1.17 million and trailing twelve-month revenue of $5.93 million, conducted its Annual Meeting of Stockholders on Monday, with significant outcomes affecting the company's future operations.
According to InvestingPro analysis, the company's shares are currently trading below their Fair Value, despite facing significant challenges with a weak financial health score. The meeting saw the election of directors and the approval of proposals that could lead to substantial changes in the company's stock structure.
Shareholders cast their votes to elect John Keeler, Nubar Herian, Jeffrey Guzy, Timothy McLellan, and Trond Ringstad to the company's Board of Directors for the next two years. The election was decided by a plurality of the votes, with Keeler receiving the majority of 1,022,323 votes for his position.
In addition to the board elections, the shareholders approved a proposal that allows Blue Star Foods to issue shares in a non-public offering, potentially exceeding 20% of the company's current issued and outstanding capital stock, as per Nasdaq Marketplace Rule 5635. The approval of this proposal suggests a potential increase in the company's capital, which could be used for various corporate purposes.
Furthermore, the stockholders authorized an amendment to the company's Amended and Restated Certificate of Incorporation to effect a reverse stock split of the common stock. The approved ratio ranges from 1-for-2 to 1-for-20, with the exact ratio to be determined by the Board of Directors at their discretion. This move is often used by companies to raise the value of their remaining shares by reducing the number of shares in the market.
The decision comes as the stock has experienced a significant decline, falling nearly 98% year-to-date, with InvestingPro data showing the stock trading at just 0.25 times book value and technical indicators suggesting oversold conditions.
Lastly, the appointment of MaloneBailey, LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, received ratification. This approval ensures the continuity of the firm's services for the upcoming fiscal year.
The meeting did not present any other proposals for voting. The information reported here is based on the official statement from Blue Star Foods Corp. filed with the Securities and Exchange Commission.
Despite current challenges, the company maintains a healthy current ratio of 1.86, indicating sufficient liquidity to meet short-term obligations. For deeper insights into Blue Star Foods' financial health and additional technical analysis, investors can access over 20 exclusive ProTips and detailed metrics through InvestingPro.
In other recent news, seafood company Blue Star Foods Corp. has been notified of its impending delisting from the Nasdaq Stock Market due to failure to meet the Minimum Bid Price Requirement. In response, the company plans to start trading on the OTC Markets’ OTC Pink Current Information tier and has expressed intentions to apply for listing on the OTCQB market.
Moreover, Blue Star Foods has launched a stock repurchase program, authorizing the buyback of up to $1.5 million of its common stock. The company has also permitted investors to convert promissory notes into shares, a strategic financial move significant in the context of challenges with debt servicing.
In terms of financial performance, Blue Star Foods reported a 7% revenue increase to $1.8 million and a 264% rise in gross profit for the second quarter of 2024. The first half of the year also saw a 14% revenue increase to $2.3 million and a 27% increase in gross profit.
Finally, the company has renewed its aquaculture license through 2033 and signed an agreement to supply nutritious meals to the U.S. Military, highlighting its ongoing business developments. These are among the recent developments within the company.
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